This is your starting point. The daily chart establishes the overall health of the asset. You look for major support and resistance levels, long-term moving averages, and the primary trend direction. If the daily chart is in a structural downtrend, buying intraday bounces is statistically dangerous. 2. The Hourly Chart (The Tactical Setup)
Volatility remains low, and the price typically stays below key moving averages. Stage 2: Markup
– A sustained uptrend with higher highs and lows; the most profitable phase for long trades. Stage 3: Distribution
It is important to correct the potential typo in the keyword "multiple link." While chart linking is a software function (e.g., linking chart windows so they scroll together in ThinkorSwim or TradingView), by brian shannon technical analysis using multiple link
Price moves sideways as "smart money" begins to build positions after a downtrend.
Brian Shannon’s approach emphasizes that no single timeframe tells the whole story. A chart that looks incredibly bullish on a 5-minute interval might actually be bumping into a massive resistance level on the daily chart. Conversely, a daily chart that looks extended and ready to pull back might offer a perfect low-risk entry on a 15-minute chart during a brief intraday consolidation.
, provides a framework for understanding market structure and identifying low-risk, high-probability trades . His approach centers on the idea that "price is what pays" and focuses on aligning the trends across various time periods to confirm entry and exit points. This is your starting point
Shannon is a pioneer in using the Anchored VWAP (AVWAP). By "anchoring" the VWAP to a significant market event—such as an earnings release, a corporate restructuring, a major swing high, or a swing low—traders can see the exact average price paid by all market participants since that specific event occurred. How to Set Up Your Multi-Timeframe Screen
These tools come together to form a cohesive trading methodology:
Unlike traders who clog their screens with lagging indicators, Shannon advocates for focusing on price and volume. Key components include: If the daily chart is in a structural
Used to plan the trade and confirm that the stock is in a "markup" stage (e.g., above rising 20 and 50-day moving averages).
Shannon's work is centered on two highly acclaimed books:
Stop analyzing single charts in isolation. Start linking your time frames. As Shannon writes in the final chapter of his book: "The trend is your friend, but the time frame is your map. Without the map, the friend will lead you off a cliff."